Corporate Credit Rating 2025 for ENERGY4U SRL: B1- (First Issuance)

modefinance published the Solicited Corporate Credit Rating of ENERGY4U S.R.L. on the website and the rating assigned to the entity is B1- (First issuance). The analysis revealed that the company has an adequate economic-financial situation with average capability of repaying financial obligations and it is little affected by adverse economic scenarios.

ENERGY4U is an Italian company headquartered in Milan, operating in the free market for electricity and gas supply. Evolving from a business with over twenty years of experience in the condominium and energy sector, E4U primarily addresses condominium administrators, offering customized, digital, and centralized solutions. Its operational model is lean and service-oriented with a single point of contact for each client, avoiding call center intermediation and ensuring direct support. The consultative approach aims to improve operational efficiency, reduce costs, and increase transparency in procurement and energy reporting processes. The company also provides integrated digital services for contract management, billing, and condominium accounting, as well as innovative tools such as BAZMI, FascicoloImmobiliare.net, and Energy Manager.

ENERGY4U S.R.L. demonstrates an adequate economic and financial position, highlighting a balanced asset structure supported by equity of €1.38 million against total assets of €4.48 million, entirely concentrated in the short term. The company has no financial debt. Financial stability is sound, as reflected by a current ratio of 1.44x. On the economic front, 2024 shows a significant increase in sales revenue (€7.11 million; +184%), EBITDA (€1.31 million vs. €236 thousand), and net profit (€1.25 million vs. €167 thousand).

During the 2024 fiscal year, the company improved its self-financing capacity, which was, however, absorbed by net working capital, resulting in a negative operating cash flow. These dynamics should be interpreted in the context of the Group’s cash pooling and do not represent actual issues in cash flow management. Additionally, cash outflows were recorded in investing and financing activities, the latter related to the repayment of bank debt.

The company has a single shareholder—Group Up S.r.l.—which is attributable to the Mazzocchi family. Group Up does not hold any stakes in other companies. The majority shareholder of Group Up, Mr. Marco Mazzocchi, also serves as the sole director of E4U. Finally, the company does not have any supervisory bodies.

ENERGY4U S.R.L. shows a size positioning above the sector median, supported by the growth in turnover recorded in the last fiscal year. In terms of solvency, the company aligns with the peer group median, indicating a balanced equity structure consistent with industry standards. Regarding profitability, it ranks high, close to the upper levels of the sample. Peer group analysis highlights a progressive strengthening of financial and equity balance, with improving trends both in leverage and financial leverage. Liquidity ratios remain stable and balanced, while profitability metrics indicate a strong ability to generate returns on invested capital and risk.

The fundamentals of the Italian energy sector have improved due to the stabilization of gas and electricity prices, accompanied by a reduction in volatility compared to the record highs of 2022. However, the increasingly strategic role of LNG (liquefied natural gas) in the energy mix—which accounted for 42% of EU gas imports in 2023, up from 20% in 2021—as a substitute for Russian pipeline gas, leads to higher procurement costs and exposes Italy to the risk of potential price increases driven by global market dynamics (such as rising gas demand in Asia or changes in shale gas extraction policies in the USA).

At the macroeconomic level, GDP growth in 2024 remains modest, due to tight financial conditions (with interest rates still high in the Eurozone), inflation around 2% impacting household spending and investment, and global growth potentially constrained by heightened geopolitical tensions and tighter US trade policies.

The present Corporate Credit rating is issued by modefinance under EU Regulation 1060/2009 and following amendments.

The present rating is solicited and is based on both private and public information. The rated entity and/or related third parties have provided all private information used. Modefinance had access to some accounts and other relevant internal documents of the rated entity and/or related third parties. Solicited and unsolicited ratings issued by modefinance are of comparable quality, as the solicitation status has no effect on methodologies used. More comprehensive information on modefinance Corporate Credit Ratings are available at http://cra.modefinance.com/en

The present Corporate Credit Rating is issued on MORE Methodology 2.0 and Rating Methodology 1.0. A comprehensive description of both methodologies, as well as information on Modefinance Rating Scale and Mappings, is available at http://cra.modefinance.com/en/methodologies.

For information on historical default rates of modefinance Corporate Credit Ratings please refer to ESMA Central Repository and ESMA European Rating Platform.

modefinance refers to default as a company under bankruptcy, or under liquidation status, or under administration or for which missed payments on a financial obligation are officially recorded.

The quality of the information available on the rated entity and used to determine the present rating was judged by modefinance as satisfactory. Please note that modefinance does not perform any audit activity and is not in a position to guarantee the accuracy of any information used and/or reported in the present document. As such, modefinance can accept no liability whatsoever for actions taken based on any information that may subsequently prove to be incorrect.

The present credit rating was notified to the rated entity in order to identify potential factual errors, as prescribed by the CRA Regulation.

No amendments were applied after the notification process.

Modefinance provides ancillary services to the entity (preliminary rating). Modefinance guarantees that the provision of ancillary services does not give rise to any conflict of interest with its rating activities.

The rating action issued by modefinance was performed independently. The analysts, members of the rating team involved in the process, modefinance Srl and its members and shareholders do not have any conflicts of interest in relation to the Rated Entity and/or Related Third Parties. If in the future a potential conflict of interest is identified in relation to the persons reported above, modefinance Ratings will provide the appropriate information and if necessary the rating will be withdrawn.

The present Credit Rating is an opinion of the general creditworthiness that modefinance issues on the rated entity, and should be relied upon to a limited degree. The issued rating is subject to an ongoing monitoring until withdrawal.

Head Analyst - Elisa Graffi, Rating Analyst
elisa.graffi@modefinance.com

Responsible for Rating Approval - Pinar Dilek, Rating Process Manager
pinar.dilek@modefinance.com